3i Infrastructure (3IN) H1 2025 earnings summary

Executive summary

• Achieved a 5.1% total return on opening NAV for the first half, ahead of the annual target of 8–10% per annum, with NAV per share rising to 374.7p and strong performance from major assets.

• Interim dividend of 6.325p per share declared, up 6.3% year-over-year, on track to meet the FY25 target of 12.65p per share, fully covered by net income.

• Realization of Valorem at a 31% uplift to September 2023 valuation and partial syndication of Future Biogas at a 15% premium to March 2024 valuation highlight strong private market demand.

• Proceeds from Valorem sale to be used to pay down the revolving credit facility, enhancing liquidity.

• Portfolio companies continue to show strong earnings momentum and are well positioned for long-term growth.

Financial highlights

• Portfolio value at £4.0bn as of 30 September 2024, with NAV per share at 374.7p and 12 assets spanning energy transition, digitalisation, and essential infrastructure.

• Total income and non-income cash for the period was £103m, supporting dividend and operating costs.

• Realised proceeds of £2.8bn from asset sales, with an average uplift on realisation of 37% and a gross realised IRR of 23%.

• Ongoing charges ratio was 1.60% (2023: 1.61%), with management fees of £25m and no performance fee accrued.

• Cash and undrawn facilities of £562m after Valorem proceeds; £900m RCF maturing November 2026.

Outlook and guidance

• On track to deliver the FY25 dividend target of 12.65p per share, with portfolio companies well positioned for long-term growth.

• Proceeds from the Valorem sale expected in Q1 2025 will be used to reduce RCF drawings and enhance liquidity.

• Targeting a total return of 8–10% per annum over the medium term and a progressive annual dividend per share.

• Portfolio positioned to benefit from megatrends in energy transition, digitalisation, and demographic change.

• Confident in delivering sustainable returns, supported by strong private market demand for infrastructure assets.